Tangedco suffers a loss of Rs 10,868 crore even after tariff hike

CHENNAI: Despite a steep hike in the power tariff for all categories of consumers, TANGEDCO has suffered a loss of Rs 10,868 crore in 2022-23 as against the projected revenue loss of Rs 7,825 crore.

According to TANGEDCO's 14th annual report for 2022-23, the utility's revenue loss has come down to 10,868 crore in 2022-23 which is nearly 16 per cent less than the previous fiscal year 2021-22 loss of Rs 12,995 crore.

The overall revenue of the TANGEDCO has increased by 31 per cent to Rs 82,399 crore in 2022-23 as against Rs 62,799 crore in 2021-22. However, the expenditure increased by 27 per cent to Rs 91,592 crore in 2022-23 from Rs 71,929 crore in 2021-22.

Among the various heads of expenses in 2022-23, the power purchase cost is Rs 50,990 crore in the overall expenditure accounting for 55 per cent of its total expenses. In 2021-22, the cost of power purchase stood at Rs 39,365 crore. The power generation cost in its own thermal, gas turbine and hydro plants stood at Rs 10,622 crore in 2022-23 as against Rs 7875 crore in 2021-22.

In the corresponding periods, the employee's benefit expenses have increased by 29 per cent to Rs 10,956 crore while the finance cost has increased by 23 per cent to Rs 13,450 crore. The TANGEDCO's liabilities have increased from Rs 1,16,315 crore in 2021-22 to Rs 1,37,533 crore in 2022-23.

A senior TANGEDCO official attributed the increase in the power purchase cost to an increase in the power demand owing to the post-Covid rebound of industries. "The power generation cost has increased due to an increase in the coal prices, " the official added.